Magento, hybris, IBM, Oracle Comparison February 2017

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Magento, SAP hybris, IBM WebSphere Commerce, Oracle Commerce (ATG) e-commerce platform comparison including typical project, license, support, infrastructure management (hosting), application management costs, implementation time, provider options.
Comparison between Magento Enterprise and Community Edition features. Cap analysis and 3rd party providers.

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Magento, hybris, IBM, Oracle Comparison February 2017

  1. 1. MAGENTO, HYBRIS, IBM, ORACLE COMPARISON February 2017 Tero Juola Head of Digital Strategy
  2. 2. BEST WAYTO DESCRIBE MAGENTO? • Magento did same for e-commerce platforms as iPhone did for smart phones. • Magento extension marketplace is like Apple’s App Store • What ever feature an e-commerce merchant needs it can be installed virtually as simple as App to iPhone • Adding or altering web store functionality is not an IT project that takes weeks or months.
 In Magento it takes from minutes to days. • Time to Market, ROI andTCO is beyond imagination for old school e-commerce merchants • Magento is a competitor with complete different business model in e-commerce market CopyrightTero Juola, Head of Digital Strategy
  3. 3. AGENDA • Introduction • Difference between CMS with shopping cart plugin and E-commerce • Gartner March 2016 E-commerce Magic Quadrant • Forrester Wave Comparison • Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATGTCO,TTM, ROI comparison • Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATG references • Difference between Magento and SAP hybris, IBM WebSphere Commerce, Oracle ATG • Magento marketshare January 2016 • Magento in depth and for whom • Magento Enterprise and Community Edition features comparison and cap analysis • Typical Magento Project • Questions CopyrightTero Juola, Head of Digital Strategy
  4. 4. TERO JUOLA • 21 years of experience on e-commerce (since 09/1996) • 15 years of experience on IBM WebSphere Commerce, 11 trainings, 5 Specialist & Expert certifications • 5 years of experience on Magento, Solution Specialist certification • 1 year of experience on hybris, training • Over 40 trainings for IBM, Sun Microsystems, Oracle software & hardware, 14 certifications on WebSphere, MQ, DB2, Magento • Certified Solution Architect • Over 40 e-commerce projects in different hands-on roles (hobbyhall.fi, sokos.fi, stockmann.com, akateeminen.com, netanttila.com, blackbeltdivers.us, beibamboo.com, spu.fi, helma.fi, topsport.fi, bauhaus.fi, pauligprofessional.com, marimekko.com, hexaplan.fi, pauligshop.fi, klick.ee, seppala.fi, ontime.com, ) • E-commerce merchant since 1997 (International; electronics, sporting goods) • 6 years at Capgemini as a Leading Consultant, 4 years at Sun Microsystems as a Software Pre-sales Architect, Satama Interactive, S-Group,Tieto, Oracle,Vaimo CopyrightTero Juola, Head of Digital Strategy
  5. 5. GARTNER E-COMMERCE MAGIC QUADRANT MARCH 2016 CopyrightTero Juola, Head of Digital Strategy
  6. 6. FORRESTER WAVE COMPARISON Shortlist comparison, scale 1-5 (* based on Forrester Wave B2C eCommerce Platforms Q42013, Q42014 with updates for Nordic market presence Magento 1.12 EE WebSphere Commerce 7 Demandware SaaS hybris 4.8 MCS Microsoft CS9 Solution & Technology architecture 4 4 3 4 2 Site management 4 4 5 3 3 eCommerce features 5 5 4 4 3 Marketing tools 2/4 (* almost all modules avail. 5 5 3 2 Customer management 3 3 3 2 3 Community and social commerce 5 5 4 3 2 Internationalization 4 4 5 4 3 Support 4 4 4 2 4 Agility & TCO with new features 5 2 2 1 1 Pricing 5 1 2 2 3 Product & Company strategy 4 4 2 4 3 Market presence, installed base, growth 5 2 2 1 1 Summary 52 43 41 33 30 CopyrightTero Juola, Head of Digital Strategy
  7. 7. MAKE NO MISTAKE WITH CMS • CMS means Content Management System. CMS is used to build and develop dynamic web pages for websites.The examples of CMS are Wordpress, Drupal, Joomla, etc. • E-commerce means Electronic Commerce. E-commerce is a one type of website used for selling and buying products online.The examples of E-commerce are Magento, SAP hybris, IBM WebSphere Commerce, Oracle Commerce, etc. • Shopping cart plugin does not make CMS an E-commerce software • WooCommerce and all the other plugin type shopping cart extensions for Wordpress, Drupal, Joomla CMS are missing 99% of the features that are needed to run an E-commerce site • CMS with shopping cart plugin and E-commerce as systems are just incomparable • Vice versa E-commerce systems have CMS that are average at best • Businesses need both and the best solution is to integrate these two systems CopyrightTero Juola, Head of Digital Strategy
  8. 8. DON’T GOTO A GUN FIGHT WITH A KITCHEN KNIFE • “Do you have time to talk about the miracle of Shopify prices? Starting with 9 bucks a month you get basically everything you need to run your e-commerce site” • What have you been told about offers too good to be true? • Actual cost is project + fixed 2 % from your online sales + 9-179 $/month • Complete vendor lock-in, no customisations, no API access, only few modules, no module customisation • Every shop looks like another. No shopping flow customisation. No own branding. • Only B2C stores, no localisations, no integrations. • Avoid like plague consults that offer Shopify based solution.Try it your own if you want to. • Demandware has same business model except much higher costs CopyrightTero Juola, Head of Digital Strategy
  9. 9. MAGENTO, HYBRIS,WC,ATG Magento (Marketshare 29,1%) hybris (Marketshare 0,2%) WebS. Com. (Marketshare 0,6%) Oracle ATG (Marketshare 0,1%) Project 1-5 months 15-250 k$ 7-9 months 500-750 k$ 9-12 months 1 m$ 1-4 years 10-100 m$ SW licenses
 (maint. lic. sup.) CE 0 $ EE 22-250 k$/y 2-3 x 70 k$ 50 k$/y 16-23 k$/y/25 stores/10 users + 2 k$/PVU/y
 (example 4 cpu x 10 core x 100 PVU x 2 k$ = 8 m$/y) 1-6 m$ 200-1000 k$/y Hosting 200-1000 $/m 6-8 k$/m 10-12 k$/m 10-12 k$/m Solution Providers dozens few couple one Cost of localisation 4-37 hr/ country 500-2000 hr/ country x times cost
 of the project x times cost
 of the project ROI ROI 159-176% Payback time 5.2-5.8 months (Forrester study) - - - CopyrightTero Juola, Head of Digital Strategy
  10. 10. HEADS UP SAP RUNNERS • If your company runs SAP, then you need to have SAP Named User License (NUL) for every customer:
 89 $ per customer per store + 18% per year • Usually companies go around this in web shop integration so that all online sales is directed to one generic SAP customer account (First Name:Web, Last Name: Sale). Only one Named User License is needed for online customers. • SAP hybris license conditions forbid to use this loop hole anymore. • SAP ERP & hybris users must have SAP Named User License for every online customers for now on • The license cost impact is huge especially for SAP hybris B2C businesses • 2 million customers x 89 $ = 178 000 000 $ + 32 000 000 $/year there after • Interested in Open Source? CopyrightTero Juola, Head of Digital Strategy
  11. 11. REFERENCES • Magento:
 - Harper’s Bazaar
 - Nicole Miller
 - Bauhaus
 - Christian Louboutin
 - Gant
 - Rebecca Minkoff
 - Easton
 - Olympus
 - Nike
 - Paul Smith
 - Mont Blanc
 - Björn Borg
 -Tracy Reese
 - Peter Millar
 -Viewsonic • IBM WC:
 - Sears
 - Ikea
 - Argos
 - Boots
 - L.L.Bean
 - Sony
 - Panasonic
 - Canon
 - Seagate
 - Roche
 - Goodyear
 - Mazda
 -Volkswagen
 - Audi
 - Staples • SAP hybris:
 - 21 Diamonds
 - 3M
 - La Fayette
 - Electrolux
 - Agco
 - Aldo
 - Asics
 - Asos
 - Audi
 - Alfa Laval
 - Dr. Martens
 - Airgas
 - Bauhaus
 - Berner
 - Bridgestone • Oracle ATG:
 - Fruugo: took over 3 years to build and cost over 37 million euro generating eight thousand euro revenue before bankruptcy
 - Ikea has had Oracle Commerce migration from WebSphere Commerce project going on since 2010.
 Still runs on WebSphere Commerce.
 - Walmart
 - JC Penny
 - Walgreens
 - Kohl’s & Neiman Marcus CopyrightTero Juola, Head of Digital Strategy
  12. 12. MAGENTOVS. OTHERS • SAP hybris, IBM WC, Oracle ATG: Java EE
 closed source, vendor lock-in, expensive to scale • Magento CE & EE: MySQL, PHP, JavaScript
 100% open source, no vendor lock-in, inexpensive to scale • Magento:
 - shortest time to market (months vs year or over)
 - lowest total cost of ownership (EE price based on online revenue)
 - highest return of investment (Forrester: 176-159%, payback time 5.2-5.8 months)
 - no vendor lock-in
 - 6500+ extensions
 - 5000+ certified developers CopyrightTero Juola, Head of Digital Strategy
  13. 13. MAGENTO MARKETSHARE JANUARY 2016 CopyrightTero Juola, Head of Digital Strategy
  14. 14. MAGENTO • Published first time August 2007 byVarien Inc. • Based on Apache, PHP, Zend architecture framework and MySQL • Runs virtually on any platforms incl. clouds, small footprint, high performance, can be clustered • eBay bought Magento February 2010, sold November 2015 to Permira Funds • Community Edition is licensed under Open Software License/Academic Free Licence and supported by the Community. Current CE version 2.1, EE 2.1 • Enterprise Edition is licensed and supported by Magento (22-250 k$/year based on online revenue) • Magento’s CE marketshare 09/2014 was over 34%, over 240 000 installations. EE 9 % • Magento’s functionality and features can be extent and customised with thousands of ready made extensions leaving the core system/code untouched • OOP, MVC, EAV, 100% open source, 6500+ extension marketplace CopyrightTero Juola, Head of Digital Strategy
  15. 15. MAGENTO • Suits for small businesses (Community Edition; cost effective) • Scales for enterprises (Enterprise Edition; +500k SKUs, +50k transactions/day) • Suits for growing businesses (Migration from CE to EE) • Suits for backend integrated (WS & Rest API’s, ERP connectors) • Thousands of Magento developers around the world • Hundreds of Magento solution and hosting partners around the world • Magento project costs and takes time only a fraction compared to SAP hybris, IBM WebSphere Commerce or Oracle ATG project CopyrightTero Juola, Head of Digital Strategy
  16. 16. MAGENTO EEVS CE
 FEATURES Magento EE Magento CE Code-level Access x x Web Services API x x Mobile HTML 5 Theme Pre-integrated x x Extensions x x API Integrations x x Themes x x Mobile Commerce x x Multiple Stores x x Multiple Store Views x x Advanced Administration Roles x x Persistent Shopping Cart x x Flexible Pricing Rules x x Analytics and Reporting x x Layered Navigation x x International Commerce and Multiple Languages x x Shipping Rules, Payment Configurations and Gateways x x Product Configurations x x Up-sells, Cross-sells, Related Products x x SEO x x Flexible Couponing and Promotions x x Customer Accounts Management x x Order Management x x Minimum Advertised Price x x CopyrightTero Juola, Head of Digital Strategy
  17. 17. MAGENTO EEVS CE
 FEATURES Magento EE Magento CE + extension from Magento Marketplace Advanced Customer Segmentation and Targeting x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=segmentation&pl=0 Private Sales, Events, Invitations x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=private+sales&pl=0 Gift Registry and Gifting Options x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=gift+registry&pl=0 Reward Points x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=Reward+Points&pl=0 Advanced Return Management Authorization x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=rma&pl=0 Store Credits x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=store+credit&pl=0 Full-Page Caching x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=cache&pl=0 Call Center with Assisted Shopping x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=zendesk&pl=0 Solr Search x http://www.magentocommerce.com/magento-connect/catalogsearch/result/? q=solr&pl=0 Staging, Merging and Rollback of Content x - Enhanced Catalog and Content Management System x - Pricing and Promotion Permission x - Technical Support x - Built-in Security x - CopyrightTero Juola, Head of Digital Strategy
  18. 18. TYPICAL MAGENTO PROJECT Typical Magento Project Schedule Start Finish Definition W1 W1 Project Plan W1 W2 Project Tasks W1 W2 Project Plan & Tasks Approval W2 W2 PSD Draft W2 W4 PSD Approval W4 W4 Magento Installation W2 W2 Magento Int. Configuration W2 W10 Magento Training W3 W3 Magento Ext. Configuration W4 W10 Layout & UI Installation W5 W10 Build W5 W10 Functional Approval W10 W10 Quality Control W11 W11 Magento Training W11 W11 Approval Tests W12 W12 Publishing Approval W12 W12 Launch W13 W13 End of Project W20 W20 CopyrightTero Juola, Head of Digital Strategy
  19. 19. WRAP UP • Gartner March 2016 E-commerce Magic Quadrant • Forrester Wave Comparison • Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATGTCO,TTM, ROI comparison • Magento, SAP hybris, IBM WebSphere Commerce and Oracle ATG references • Difference between Magento and SAP hybris, IBM WebSphere Commerce, Oracle ATG • Magento marketshare January 2016 • Magento in depth and for whom • Magento Enterprise and Community Edition features comparison and cap analysis • Typical Magento Project • Questions CopyrightTero Juola, Head of Digital Strategy
  20. 20. Tero Juola
 linkedin.com/in/tjuola Thank you Questions?

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